McDonald's (NYSE:MCD) Given New $300.00 Price Target at Wells Fargo & Company

Key Points

• Wells Fargo raised its McDonald’s price target from $270 to $300 and maintained an “overweight” rating, implying about 7.1% upside from the stock’s current price.
• Analyst sentiment is broadly positive: MarketBeat reports a “Moderate Buy” consensus rating and an average price target of $294.42.
• Quarterly EPS of $3.57 beat expectations of $3.38, but revenue of $7.16 billion fell short of estimates, and U.S. comparable sales declined 0.2%.

McDonald's (NYSE:MCD - Get Free Report) had its price objective boosted by equities research analysts at Wells Fargo & Company from $270.00 to $300.00 in a research report issued to clients and investors on Thursday, Benzinga reports. The brokerage currently has an "overweight" rating on the fast-food giant's stock. Wells Fargo & Company's price target would indicate a potential upside of 7.07% from the stock's current price.

Several other analysts also recently issued reports on MCD. Needham & Company LLC restated a "buy" rating on shares of McDonald's in a research note on Monday, September 21st. Evercore lowered their price objective on McDonald's from $320.00 to $300.00 and set an "outperform" rating on the stock in a research report on Thursday, September 24th. JPMorgan Chase & Co. dropped their target price on McDonald's from $280.00 to $260.00 and set an "overweight" rating for the company in a report on Thursday, September 24th. Citigroup reduced their target price on shares of McDonald's from $305.00 to $295.00 and set a "buy" rating for the company in a research report on Tuesday, October 20th. Finally, Jefferies Financial Group decreased their price target on shares of McDonald's from $260.00 to $250.00 and set an "overweight" rating on the stock in a research note on Tuesday, September 29th. One research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $294.42.

McDonald's Stock Up 6.5%

McDonald's stock opened at $280.20 on Thursday. The company's 50-day moving average price is $248.20 and its two-hundred day moving average price is $282.85. The stock has a market cap of $198.28 billion, a P/E ratio of 22.76, a P/E/G ratio of 3.01 and a beta of 0.42. McDonald's has a twelve month low of $229.20 and a twelve month high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings data on Wednesday, November 4th. The fast-food giant reported $3.57 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.38 by $0.19. McDonald's had a negative return on equity of 572.06% and a net margin of 31.72%. The company had revenue of $7.16 billion during the quarter, compared to analysts' expectations of $7.28 billion. During the same quarter in the previous year, the company posted $3.22 earnings per share. The business's revenue was up 1.1% on a year-over-year basis. Equities analysts anticipate that McDonald's will post 12.82 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of MCD. Cassia Capital Partners LLC grew its stake in shares of McDonald's by 10.7% in the 3rd quarter. Cassia Capital Partners LLC now owns 5,077 shares of the fast-food giant's stock worth $1,173,000 after buying an additional 492 shares during the last quarter. Gables Capital Management Inc. lifted its stake in shares of McDonald's by 18.9% in the third quarter. Gables Capital Management Inc. now owns 16,111 shares of the fast-food giant's stock worth $3,721,000 after buying an additional 2,560 shares in the last quarter. Marathon Wealth Advisors LLC lifted its stake in shares of McDonald's by 0.6% in the third quarter. Marathon Wealth Advisors LLC now owns 10,571 shares of the fast-food giant's stock worth $2,441,000 after buying an additional 61 shares in the last quarter. Gen Wealth Partners Inc lifted its stake in shares of McDonald's by 5.0% in the third quarter. Gen Wealth Partners Inc now owns 7,848 shares of the fast-food giant's stock worth $1,812,000 after buying an additional 374 shares in the last quarter. Finally, Kinsale Capital Group Inc. grew its holdings in shares of McDonald's by 2.4% during the third quarter. Kinsale Capital Group Inc. now owns 43,309 shares of the fast-food giant's stock valued at $10,002,000 after buying an additional 1,025 shares during the last quarter. Institutional investors and hedge funds own 70.29% of the company's stock.

McDonald's News Summary

Here are the key news stories impacting McDonald's this week:

• Positive Sentiment: Adjusted Q3 earnings were $3.57 per share, ahead of the roughly $3.38 analyst consensus and up from $3.22 a year earlier. Stronger franchised margins and international performance helped offset U.S. softness. McDonald’s Q3 Earnings Beat on Franchised Margins, Revenues Miss
• Positive Sentiment: Management said U.S. sales improved as the quarter progressed, with value promotions helping draw diners back. Investors are looking to these efforts to support a recovery in traffic. McDonald's says US sales on the mend as promotions draw diners back
• Positive Sentiment: The company plans additional value bundles and is testing affordable offers at U.S. restaurants, aiming to attract budget-conscious customers. McDonald’s also raised its dividend for the 50th consecutive year. Why McDonald's Stock Popped Today
• Neutral Sentiment: New value bundles could help restore traffic, but their effectiveness will depend on execution and franchisee participation; the company has reported tensions with some franchisees over promotions and pricing. McDonald’s says US sales are improving amid tensions with franchisees
• Negative Sentiment: Revenue was $7.16 billion, below the roughly $7.28 billion consensus, while U.S. comparable sales fell 0.2%—the first decline in six quarters—amid pressured consumer spending and weaker traffic. McDonald's US sales decline for first time in six quarters despite value push

About McDonald's

McDonald’s Corporation is a global quick-service restaurant company that operates and franchises restaurants under the McDonald’s brand. Its restaurants serve a menu that includes hamburgers, cheeseburgers, chicken sandwiches, French fries, breakfast items, desserts, salads, beverages and coffee. Offerings vary by market, and many locations provide drive-thru service, delivery and digital ordering through the McDonald’s mobile app.

The company operates through a heavily franchised business model, with restaurants owned and operated by independent franchisees, affiliates and the company itself.

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